(Adds Shanghai closing prices, updates London prices) BEIJING, Oct 28 (Reuters) - Zinc prices rose on the London Metal Exchange on Monday, as inventories at a 12-year low set the metal used to galvanise steel on course for a fourth straight daily gain, while nickel eased after a Chinese-owned plant in Papua New Guinea restarted. Heading into the annual LME Week gathering in London, zinc stocks in LME-registered warehouses <MZNSTX-TOTAL> currently stand at 58,525 tonnes, the lowest since October 2007, after sliding by half this year. Prices for the metal are moving higher as the market has started realising that inventories are still tight, ANZ said in a note. The premium of cash LME zinc over the three-month contract <CMZN0-3> was last at $44 a tonne, the highest since Oct. 1, indicating tight near-term supply in the LME system.
* ZINC: Three-month zinc on the LME rose 0.7% to $2,528 a tonne as of 0734 GMT. The most traded zinc contract on the Shanghai Futures Exchange closed up 1.7% at 19,110 yuan ($2,706.76) a tonne.
* COPPER: LME copper eased 0.2% to $5,913 a tonne after hitting $5,924 on Friday, the highest since Sept. 16, on concerns over disruption in top producer Chile. ShFE copper closed up 0.2% on 47,430 yuan a tonne after also hitting its highest since Sept. 16.
* CHILE: Chilean President Sebastian Pinera on Saturday added a major cabinet reshuffle to a growing list of reforms he has promised to tame inequality and quell mass protests.
* RISK: "Recent social unrest in Chile is an ongoing risk for copper and other metals," ANZ said.
* OTHER METALS: Nickel was the laggard, shedding 0.8% in London to $16,635 a tonne as Metallurgical Corp of China said it had restarted its Ramu plant in Papua New Guinea, while aluminium edged up 0.4%, lead lost 0.4% and tin added 0.2%.
* TRADE: U.S. and Chinese officials are "close to finalising" some parts of a trade agreement, the U.S. Trade Representative's office and China's Commerce Ministry said.
* Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a trade deal and strong U.S. corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision.
BASE METALS PRICES 0740 GMTThree month LME copper 5912Most active ShFE copper 47430Three month LME aluminium 1734Most active ShFE aluminium 13820Three month LME zinc 2529Most active ShFE zinc 19105Three month LME lead 2212.5Most active ShFE lead 16695Three month LME nickel 16625Most active ShFE nickel 132080Three month LME tin 16715Most active ShFE tin 139020
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 316.78LME/SHFE ALUMINIUM LMESHFALc3 -61.65LME/SHFE ZINC LMESHFZNc3 -1292.16LME/SHFE LEAD LMESHFPBc3 -1545.8LME/SHFE NICKEL LMESHFNIc3 -5984.73
($1 = 7.0601 Chinese yuan renminbi)
(Reporting by Tom Daly; Editing by Shounak Dasgupta and Louise Heavens)